Stocks and Investment Selection and outlook in Sept 2008 downturn
September 19th, 2008 by ALVIN SOONG
Though the current value of her portfolio has fallen about 20 per cent due to the correction in the market, there are investors who believe that in the long run/near future, the stocks will peak up. Research must be done before investing and favours stocks that can continue to deliver good dividends, have low price-earnings ratios and low price-to-book values.
Some investors as featured on straits times place their investments large companies with established track records as they tend to be better managed with greater transparency and good corporate governance.
With a longer time frame, ie a long-term time horizon, they should go for counters that are priced much lower than what their assets are worth, and where their income sources are relatively secure.
Another way is to go for companies in the staple food business or those that have a reasonable stream of rental income from quality customers or tenants. It does require you to know your companies - their assets and liabilities, management and industry characteristics
These are some of the strategies and longer bird eye’s views of some of the investors that share their views in Sunday Straits Times for the coming downturn market
Inspired and summarised/extract from various parts of info from Sunday Straits Times 14th Sept
